Division 2Notional rates in respect of certain trust income

### Division 2—Notional rates in respect of certain trust income 1. This Division applies: (a) to a share of a resident beneficiary of the net income of a trust estate, if: (i) the trustee of the trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of that share; and (ii) Division 16 of Part III of the Assessment Act applies in relation to that share; and (b) to the net income or a part of the net income of a resident trust estate, if: (i) the trustee of the trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and (ii) Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income. 2. The notional rate in respect of income to which this Division applies is: (a) in a case where the income is: (i) a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 of the Assessment Act; or (ii) the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 99 of the Assessment Act, being the net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income; the rate that would be calculated in accordance with Division 1 if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act; and (b) in any other case—the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to the income if: (i) that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax under section 99 of the Assessment Act; and (ii) the words “exceeds the tax‑free threshold but” were omitted from item 1 of the table applicable to the year of income in Part I of Schedule 7.